Boeing to Furlough Thousands of Staff Amid Factory Strike
Boeing Chief Executive Officer Kelly Ortberg — who in August replaced David Calhoun — on Wednesday announced that the aircraft manufacturer would furlough 'a large number' of employees to save cash during a strike that will halt production of a number of the company's planes....
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Facts
- Boeing Chief Executive Officer Kelly Ortberg — who in August replaced David Calhoun — on Wednesday announced that the aircraft manufacturer would furlough 'a large number' of employees to save cash during a strike that will halt production of a number of the company's planes.[1][2]
- 'We are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers and employees,' Ortberg said to staff in an email. 'We are planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike.'[3]
- Ortberg added that he and other members of the leadership team will take a 'commensurate pay reduction for the duration of the strike.' He also announced a hiring freeze, cutbacks on travel, and reduced purchases from vendors and suppliers.[4]
- The cost-cutting measures come after roughly 30K Boeing staff, represented by the International Association of Machinists and Aerospace Workers union, last week rejected an offer that promised a 25% pay increase over four years — voting for the first strikes at Boeing since 2008.[5]
- Union members have called for a pay rise of at least 40%, the return of a traditional pension plan, and additional improvements.[1]
- In a post to members, the union said: 'The company was not prepared and was unwilling to address the issues you've made clear are essential for ending this strike: Wages and Pension. The company doesn't seem to be taking mediation seriously.'[1]
Sources: [1]Associated Press, [2]CNN (a), [3]New York Post, [4]CNN (b) and [5]BBC News.
Narratives
- Pro-establishment narrative, as provided by Reuters. Even with these furloughs and cost-cutting measures, if these strikes are prolonged, they will severely strain Boeing's finances and could threaten its credit rating. The company needs to get a handle on these negotiations as soon as possible.
- Establishment-critical narrative, as provided by Raw Story. So far, Boeing has come up way short in its offer to the union, particularly with respect to pay and pension. The company does not seem to be taking the mediation process seriously.
